Founders often start a business without understanding their profit model. People are more likely to fail because they only think, “I have to work!” and don’t truly grasp how and why they can make money from it. They don’t understand the concept of capital, meaning the basic funds, nor do they understand the founder’s equity. They have heard the terms often but don’t really know their meaning or importance. They don’t recognize it, although they may have heard of it a lot. You start a business and partner with others without knowing whether your return is the reward for taking risks, giving up current interests, or sacrificing competitors. Understanding this is a fundamental part of entrepreneurship. Yet, in reality, they run their business without considering these issues simply because they need to work and can do so at the moment. - Joseph’s “just my thoughts”
If the price of bread is one dollar, it signifies that the bread has a monetary value of approximately one dollar. Conversely, this indicates that one dollar represents the intrinsic value of the goods associated with the bread. In other words, the values of money and bread (goods) are established through mutual comparison, which also implies that they do not exist independently in the world, as they are assigned absolute values from the moment of their existence. If only comparison can be made, value can be assessed regardless of whether the comparison is mandatory or voluntary, allowing the value to be expressed as a price, which is its monetary value. This suggests that there is no absolute value in the economy, only relative value , and that all values constructed through comparison are subject to fluctuations in price . Consequently, wealth involves the act of preserving or augmenting this relative value while continually exchanging for other goods as a legitimate act of trad...